Harbor Cove Marina Partners Partnership, Robert A. Collins, A Partner Other Than The Tax Matters Partner - Page 10

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               On October 7, 1998, Collins commenced the lawsuit in the               
          Superior Court of California, San Diego County (trial court),               
          under the caption “Collins v. Feldman, et al., Case No. 724762".5           
          Collins initially advanced in the lawsuit five causes of action.            
          The first cause of action alleged that the Sunroad defendants had           
          to provide Collins with an accounting.  The second cause of                 
          action alleged that the Sunroad defendants breached a fiduciary             
          duty owed to Collins.  The third cause of action alleged that               
          Collins was entitled to a recision of a resolution passed by the            
          Port District approving an assignment of the marina lease from              
          HCMP to Sunroad limited partnership.  The fourth cause of action            
          alleged that Collins was entitled to declaratory relief in the              
          form of a declaration that HCMP’s managing general partner must             
          under the partnership agreement sell the marina in the public               
          market to the highest bidder and may not under the partnership              
          agreement distribute the marina to itself or to an entity under             
          its control.  The fifth cause of action alleged that Collins was            
          entitled to a cancellation of the assignment of HCMP’s                      
          partnership interest in the marina.                                         


               5 “Feldman” is Aaron Feldman (Feldman), the president of               
          Sunroad corporation, Sunroad Real Estate, and Sunroad Asset.  The           
          other defendants in the lawsuit were Sunroad Asset, formerly                
          known as Sunroad corporation, Marina Holdings, the Port District,           
          and a California limited partnership named Sunroad Marina                   
          Partners, L.P. (Sunroad limited partnership).  (We refer to all             
          five defendants collectively as the defendants.  We refer                   
          collectively to the defendants other than the Port District as              
          the Sunroad Defendants.)                                                    




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